05.10.202607:36:05UTC+00South Africa Private Sector Contracts in September

The S&P Global South Africa PMI declined to 49.0 in September 2026 from 50.5 in August, indicating a renewed contraction in private sector activity and marking the weakest performance of the year to date. The downturn was primarily driven by a sharp fall in new orders, which declined at the fastest rate in two-and-a-half years amid uncertainty over economic conditions and rising fuel prices.

Softer demand led firms to scale back both purchasing activity and inventory levels, although employment remained broadly stable. Higher fuel costs put significant upward pressure on input prices, but slower wage growth helped to moderate overall cost inflation. Output charges increased at the quickest pace since June, as companies passed higher costs on to clients.

Supply chain pressures intensified, with supplier delivery times lengthening at the fastest rate since February 2024. This was partly linked to delays at the Port of Durban and disruptions in the Middle East. Looking ahead, business sentiment strengthened to a four-month high, underpinned by greater optimism about future demand and planned expansions.